KC Pres George Sounds More Patient Than Hawkish

KC's George - on the hawkish end of the FOMC spectrum - doesn't sound particularly hawkish in a speech today, playing up uncertainty surrounding both the inflation and employment outlooks.

• While saying "as supply chains heal and demand eases, there is reason to expect inflation will eventually moderate, but it is also clear that the risk of a prolonged period of elevated inflation has increased. The argument for patience in the face of these inflation pressures has diminished."... She also says "It is important to note that the tightness in the labor market could prove temporary as a sizable number of people, about 5 million, remain out of work relative to before the pandemic."
• The concluding paragraph sums it up, and doesn't exactly hammer home the case for moving quickly on rate hikes: "In most circumstances, the Federal Reserve's dual mandate objectives for maximum employment and stable prices are in alignment, so that the Fed's policy actions support both objectives simultaneously. There are however times when the objectives can appear to be in conflict. And now might be one of those times with inflation running well ahead of its longer-run average and labor markets appearing to have further room to recover. While the current economic alignment certainly adds complexity for policymakers, ending asset purchases is an important first step along the path to policy normalization as we balance our long-run objectives and seek to promote sustainable growth and financial stability."